White House Efforts To Undermine Visa Programs Will Harm Startup and Tech Innovation
TLDR: The U.S. tech industry and startup ecosystem rely upon the important contributions of high-skilled foreign talent to drive innovation and economic growth. But the Trump administration’s efforts to undermine the country’s visa programs by suspending work visas for immigrants and attempting to narrow eligibility for H-1B visas will harm domestic innovation and drive qualified talent to other countries.
What’s Happening This Week: The White House is continuing to move forward with efforts to restrict H-1B visas for high-skilled workers by limiting the definition of specialty occupation and narrowing eligibility for high-skilled visas, arguing that the new rules are needed to limit foreign-born talent from taking jobs that could go to Americans. The Department of Homeland Security’s interim final rules would narrow the current definition of “specialty occupation” by requiring H-1B visa applicants to have a degree in the position for which they are applying. The change could affect over one-third of all H-1B visa petitions.
The latest effort to limit the H-1B visa program comes after President Donald Trump issued a June 22nd proclamation suspending the issuance of visas to high-skilled foreign workers. While federal officials said the move was made to preserve U.S. jobs amid the coronavirus pandemic, we noted at the time that the proclamation “hampers the tech sector’s ability to respond to the ongoing outbreak by limiting the effectiveness and reach of its workforce.”
Why it Matters to Startups: High-skilled foreign workers play a significant role in fostering innovation and entrepreneurial activity across the tech sector, but limiting companies’ access to foreign-born talent—particularly during the ongoing pandemic—could make it more difficult for the U.S. to attract and attain the best entrepreneurial minds. By making the country a less hospitable destination for talented workers, the administration is effectively driving the brightest minds and ideas to other nations at a time when the U.S. should be working to embolden companies to lead our long-term economic recovery.
As Engine and 118 startups and tech companies noted in a letter asking President Trump to reconsider his suspension of visas for high-skilled foreign workers, “only with access to a global pool of talent can companies and entrepreneurs advance new technologies and keep America at the forefront of global innovation.” By promoting policies that limit companies’ access to qualified talent, the administration is hampering the country’s ability to innovate on a global scale. With H-1B denial rates already on the rise, and the administration’s new rules likely to have an outsized impact on H-1B petitions, companies may be forced to consider relocating their operations abroad in order to meet their workforce needs. The U.S. will fall behind other global competitors if qualified talent is forced to go elsewhere.
Curtailing high-skilled immigration may actually decrease the availability of U.S. jobs. Studies have shown that the H-1B visa program creates new jobs for American workers, and expanding the program could result in the creation of up to 1.3 million new U.S. jobs by 2045. And limiting the number of H-1B visa holders also has a negative effect on job growth by limiting the number of new tech jobs for U.S.-born workers in major metropolitan areas.
High-skilled immigrant entrepreneurs help keep the U.S. at the forefront of global innovation by developing innovative solutions and founding new companies—often at rates significantly higher than those of native-born Americans. Many H-1B visa holders also launch their own startups and tech firms that make significant contributions to the U.S. economy. According to one study, at least 55 percent of startups valued at more than one billion dollars had at least one immigrant founder. Limiting the ability for foreign-born talent to drive this type of domestic entrepreneurship will, in turn, limit the growth and development of future U.S. startups and tech companies.
Engine is planning on responding to the Trump administration’s efforts to undermine the country’s visa programs by highlighting the important role high-skilled immigrants play in developing ideas, driving innovation, and founding new businesses. If you are a startup or entrepreneur who cares about these issues, or is affected by the administration’s efforts to limit H-1B visas, please reach out to us here. In order to effectively support U.S. companies and workers affected by the pandemic, we believe that it’s critical for the federal government and policymakers to support, protect, and expand the H-1B visa program in a way that promotes American innovation and job creation. Only by welcoming high-skilled, qualified talent can the U.S. remain ahead of our global competitors.
On the Horizon.
The Senate Judiciary Committee is scheduled to hold a markup at 9 a.m. on Thursday to discuss the Online Content Policy Modernization Act. The legislation would make it more expensive for startups to moderate harmful user-generated content, and would increase opportunities for abusive copyright claims against everyday Internet users.
Join Engine and the Charles Koch Institute this Friday at noon for a virtual panel on the Nuts and Bolts of Content Moderation. We'll discuss how and why various Internet companies of all sizes moderate their users' content to the benefit of the platform and its users. You can RSVP here.
